Thursday 18 March 2010

Day 26 - Dealing with debt

Reading: Deuteronomy 15:1-11

The global economic recession that struck with such venomous and devastating effect last year was fuelled, in essence, by unmanageable debt spiralling out of control. Money was loaned, particularly in the sub-prime property sector, without any realistic hope that it would ever be repaid but with the assumption that the property value itself would cover the debt. This debt was underwritten by reputable insurance houses, and subsequently traded as a ‘low-risk’ investment option. But when the bottom fell out of the property market, there was nothing to underwrite these huge levels of indebtedness. The cumulative and knock-on effects of this literally brought the global economy to its knees.

How this scandalous situation could have arisen in the first place is the vexed question that hangs over some of the world’s richest economies that shoulder the lion’s share of the blame for this global economic meltdown. The answers from an economic perspective are complex and beyond my ability to comprehend entirely. But from a spiritual perspective the reasons are pretty clear and not that surprising - rapacious greed, willfull deception and rampant materialism. A pretty deadly cocktail with the most bitter aftertaste imaginable.

As it is being played out on the global stage right now, the tragic face of crippling debt can be seen for what it is. Which perhaps is the gift within this recession - forcing a radical rethink as to how business is allowed to be conducted in this global village of ours, where the decisions of some (especially the rich and powerful) have such massive consequences on all.

Of course, in a very real sense none of this is new. The issue of debt is one which the bible tackled head-on centuries ago. Interestingly, in the bible, the larger focus by far is on the responsibilities and obligations of lenders, and the requirements of generosity and justice that should govern their lending activity, particularly when dealing with the poor. In Deuteronomy 15:1-11 there’s a fascinating picture about the necessity for generous open-handedness on the part of the wealthy, while at the same time providing safe-guards that nobody should fall into the pit of crippling debt that can never be repaid. What this points to is God’s broad concern that no economic exploitation should ever take place, because it diminishes everyone who is involved in whatever way.

Today, people subject themselves to very real economic exploitation through the very high levels of indebtedness in which they have become trapped. If this describes your personal financial circumstances right now, then you will be familiar with the sense of hopelessness and despair that crippling levels of debt can bring. Maybe it feels for you like there’s no way out. While I obviously cannot make any sweeping generalisations about what might or might not happen with you, as everyone’s circumstances are different, what I can say is this: God is deeply concerned about all who are indebted, and offers real hope that can make a concrete difference in your financial affairs.

The hope God offers is the shining light of truth to bring out into the open whatever is lying festering in secret, with the assurance of God’s unconditional love and support to enable you to start living in a more sustainable way.

To take hold of this hope, what you need to do is the following:

  1. Get honest. Admitting to yourself that you have a debt problem is the first essential step to dealing with it. Take a long and sober look at your financial affairs. If your lines of credit have been exhausted. If you’ve struggled to service your debt repayments for two months in a row. If the levels of your short-term debt are the same or higher than they were six months ago, the chances are that you have a debt problem. The sooner this is honestly acknowledged the better.
  2. Get help. Find someone helpful whom you can talk to about your situation. This requires humility, but is an essential step in the healing process. An objective outsider does not have the same emotional attachment to your financial situation as you do, and will be able to see things with a fresh perspective. Debt counsellors are increasingly common. Psychological and spiritual counsellors can also provide essential support for the underlying emotional and spiritual issues that are almost always a factor in situations of crippling debt.
  3. Get smart. Formulating a financial strategy to start moving you out of debt is imperative. Here the services of a debt counsellor may be essential, especially in communicating with your creditors. You’ll need to define clear parameters for your ongoing expenditure, to keep it to appropriate levels so that the problem isn’t compounded while you’re trying to resolve it.
  4. Get accountable. Unless you have some form of accountability to hold you to your course, it is likely that you may slip back into bad patterns of behaviour. Find someone who can hold you accountable to the commitments that you have made.

All of this is pretty down-to-earth, pragmatic advice - but woven through it is the promise of God’s gracious presence and activity in your life that longs to liberate you from the crippling burden of debt in which you find yourself.

Prayer:

Gracious God, hear our prayer for all who live under the constant cloud of excessive debt. Shine the light of your truth upon their circumstances, so that whatever lies hidden with destructive power may be revealed in order for it to be redeemed. Give them courage and humility to seek the help they need, and to make whatever changes they can that can lead them out of this darkness and into your glorious light. We pray especially for those who are unemployed or underemployed, who simply do not have the monthly income to support even the basic necessities of life. We pray boldly for the day when poverty and unemployment will be no more. Until then, may each of us work for economic justice within our world, and do whatever we can to alleviate the plight of the destitute and the poor. In Jesus’ name we pray. Amen.

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